Panel discussion facilitated by BBC Radio 4’s John Humphrys at this year’s Cereals 2011

HSBC Commercial Banking last week hosted a business insight event for the agricultural industry to kick start Cereals 2011, the UK’s leading technical event for the arable industry. The Trading Thoughts event, attended saw leading agriculturalists and business experts discuss the future prospects of the UK’s agricultural industry and opportunities for growth in light of increasing public scrutiny around issues such as price volatility and sustainability.

The event was opened by Rt Hon Michael Jack , HSBC’s agriculture and food industries advisor, who reiterated the importance of business forums in tackling the challenges and taking advantage of business growth opportunities in the agriculture sector.

Rt Hon Michael Jack said “Sustainability is becoming increasingly important, the food chain has to produce more from less and the whole issue of water, which is so topical now, will become an increasingly precious and indeed expensive resource.”

The event followed a ‘question time’ format with the panel consisting of Allan Wilkinson, HSBC’s head of agriculture, Mark Berrisford-Smith, senior economist, HSBC, Peter Kendall, President of NFU and David Knott, managing director of Cereals 2011 host farm.

Commenting at the event, Allan Wilkinson, head of agriculture, HSBC said: “This is the second year that we have hosted the Trading Thoughts event and we feel it has an important role to play in creating an open space for producers to share insight on how best the industry can plan for the future and remain competitive, profitable and responsible.” 

The discussions at the event touched on many topics revealed in the most recent Forward Planning 2011 report, which provides guidance to producers from HSBC on how they can remain profitable, how to manage risk, as well as providing analytical insight on growth prospects over the next 12 months.

Allan Wilkinson, head of agriculture, HSBC said: “At HSBC we know that the agricultural industry faces unique challenges, for example knowing the customer is key, and understanding that, irrespective of what happens in CAP Reform farm incomes will become increasing dependent on market returns, will be fundamental to success in the agriculture industry. But it also faces some unique opportunities and our team of specialist agricultural managers, based all over the UK, are experts in the sector, on hand to advise and provide the best support to our agriculture customers.

Speaking to businesses at the event, Peter Kendall, NFU President, said: “The current dry weather across Europe could reduce grain production by a similar figure to the 14 percent drop we anticipate here in the UK. The UK position alone will not materially affect prices, but it could be a different story if France for instance is some 7 million tonnes short of wheat.

“The links forged in a relationship such as that between grain producers in East Anglia, Camgrain, Warburtons and Sainsburys are crucial success stories, their continued success depends upon the relationships working properly and professionally.”

To find out more or contact the HSBC Agriculture team or to receive a copy of the Forward  Planning 2011 report please visit http://www.business.hsbc.co.uk/1/2/agriculture